Hire Purchase (CHP) - Overview

The Commercial Hire Purchase (CHP) agreement is simply a contract where the financier (the ‘owner’) allows you (the ‘hirer’) the right to possess and use a car or other vehicle in return for regular payments. A balloon payment (a final payment made at the end of the term – ideally this payment should be no more that the estimated value of the car at that time) is optional with a hire purchase agreement.

When the final payment of the commercial hire purchase is made, the title to the goods is transferred to you.

With a CHP there may be significant tax advantages as you are able to claim the interest repayments as well as the depreciation of the asset whereas with a standard lease the actual repayments are the tax-deductable part of the equation.

You also have the option to purchase the vehicle prior to the end of the term of the CHP.

Please note that in this brief explanation, we have referred to the finance structure as a Commercial Hire Purchase or CHP. This sort of finance structure is also known as a Corporate Hire Purchase and an Asset Purchase.

Disclaimer: We are not car financiers, nor are we able to offer advice regarding CHP. As car brokers, our aim is to get you the best purchase price on any new or used car . The information give here regarding hire purchases is for information only. However if you would like to contact one of our preferred companies that specialise in CHP, please follow the instructions above.

I have been umming and arring for the past 6 months over cars and getting my head around a few factors. I spoke to Frank this afternoon (Mon 5th Nov) and all I can say is that in 10minutes he has made more sense to me than anyone else in 3 months. I found him to be very knowledgeable, honest, upfront and has given me some excellent and needed advice.Thank you again to Frank for his words of wisdom and he didn’t burst my bubble..

Mr M Evans, Brisbane QLD

Thanks Rebecca. I’m very happy with the car and I can’t thank everyone at Private Fleet enough. I couldn’t believe that buying a brand new car could be so easy and efficient. Don’t worry, I have already began spreading the word about your services. Thanks again.

Ms K McKeegan, Geelong VIC

Please accept this as a formal thank you for your efforts on my behalf. I have been most impressed and grateful for your professional, friendly and patient assistance. The whole process has made buying a new car a pleasure rather than an onerous and irksome duty. I love my car!! Absolutely stunning to drive - took my husband out for lunch at Brooklyn to celebrate! Really thrilled. I shall not hesitate to recommend you in the future.

Ms K Bolton, Sydney NSW

I am writing to thank you and your company for the wonderful service you have given me. On the sale of my vehicle and also buying my new Honda which is just great. Both cars were delivered and picked up on time.Thank you again.

Ms J Granger, Gerringong NSW

Thank you for your assistance the car is fantastic the deal you were able to negotiate for us was great.Let’s hope we can send some additional business your way as we haven’t stopped telling people about the great deal, how easy everything was, the service the whole experience was ‘as smooth as silk’. In the end we saved around $1,800.00.Once again many thanks for your help.

Mr G Inskip, Killarney Vale NSW

I wish to commend a member of your staff that recently helped us purchase a new vehicle.Having rung various companies/garages trying to locate a particular vehicle that we wanted, we found that most companies did not even have the courtesy to call us back. We were fortunate enough to speak with Paul, who was extremely efficient right from the start. He explained what was involved in purchasing the car and also made several calls to locate a car for us almost immediately.We took delivery of our car yesterday and would have no hesitation in recommending Paul to our friends/relatives. Thank you once again for the excellent service.

Ms A Johnson, Wangara WA

I have recently purchased a brand new Volkswagen Beetle through Lenny Lenehan and I wanted you to know how lucky I think you are to have such a professional account service person.I have worked in marketing internationally for over 15 years and therefore have very high expectations as a customer and a very low appreciation of what Australia perceives as an accepted standard of level of service. However, Lenny’s competence and behaviours are those I would consider world class and I wanted you to know that he is definitely an asset to your company and I will be recommending Lenny to as many of my friends and colleagues as I can. If Lenny is the standard you base your company’s bench mark at, then I am confident Private Fleet must be one of this country’s most successful service company.

Ms A Merciadez, Pyrmont NSW

I write to thank you for making the purchase of my new WRX a hassle free and enjoyable experience. I could not believe I was behind the wheel within 2 weeks of the order.As promised, the car was beautifully presented and with a full tank. The money I saved by using Private Fleet will enable me to purchase a few luxuries. I also look forward to utilising the additional benefits of being a Private Fleet member.I will be highly recommending Private Fleet to all my family/friends/colleagues.

Mr D Jones, Howrah, TAS

After writing an enquiry form I received a phone call from Lenny within 24 hours. He took all my details and was very polite and patient with my lack of car knowledge. He told me he would have an offer by midday the next day. I received a phone call from Lenny at 10:30 am to inform me of the offer. Every communication I have had with Lenny has been efficient and any requests I have had, have been answered promptly and kindly.I love this website. It has taken all the stress of buying a new car out of the equation and makes it a pleasurable experience. I will definately be recommending this service to everyone I know. Good on you all for having such a great and workable idea. And good on you all for employing such great people.

Ms Kirgan, Picnic Pt, NSW

I wanted to thank you and your company for the great results I received via my new car. I appreciate your efforts (Anton and Catherine included), and am very happy with my car. I have had to call Russell in Canberra Toyota as I had a couple of queries with my car and he was always very helpful and happy to hear from me.I would recommend Private Fleet to others as I have done already. Thanking you...